Private equity firms circle Peloton for potential buyout
A number of private equity firms have been considering a buyout of Peloton as the connected fitness company looks to refinance its debt and get back to growth after 13 straight quarters of losses, CNBC has learned.
A number of private equity firms have been considering a buyout of Peloton as the connected fitness company looks to refinance its debt and get back to growth after 13 straight quarters of losses, CNBC has learned.
In recent months, the pandemic darling has had talks with at least one firm as it considers going private, people familiar with the matter said. The firm’s current level of interest in acquiring Peloton is unclear. A number of other private equity firms have been circling Peloton as an acquisition target, but it’s unclear if they have held formal discussions.
Firms have zeroed in on how to cut Peloton’s operating expenses to make a buyout more attractive. Last week, Peloton announced a broad restructuring plan that’s expected to reduce its annual run-rate expenses by more than $200 million by the end of fiscal 2025.
Shares of Peloton soared more than 17% in premarket trading after CNBC’s report was published.
There is no guarantee a deal will be made, and Peloton could remain a public company. The people spoke on the condition of anonymity because the talks are private.
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